Luxury Brands Need to Brace for Austerity and Align with New Affluent Values

According to a study by Unity Marketing, a leader in affluent market research, austerity is the order of the day among Affluents. Luxury marketers will have to adapt to the US luxury market drought.

Why the Drought?

Affluents sharply reduced their spending on luxury. They are reevaluating, reprioritizing and reassessing their lifestyles. The Affluent aging population is not favoring luxury goods purchases and there aren’t enough young Affluents (24–44 years) with $100k+ to support the luxury brands.

Today, the word luxury has become tarnished as Affluents view it as overrated and overpriced. According to Unity Marketing’s research, Affluents define luxury in a variety of ways, but in the current environment it’s a catch-all description that doesn’t convey the right meaning.

So What do Luxury Marketers Need to Do?

Understand the new needs and desires of Affluents (emphasis on Millennials). They should focus on those with money to spend and a willingness to indulge rather than on aspirational customers without the funds to support their wants.

Some brands who are adapting to these new values are Shinola, James Avery, Frye Company, Ghurka, and The Row.

How Can We Help?

BrightMark helps luxury brands use their brand equity in creative new ways to better align with the values of new Affluent consumer. Don’t risk becoming irrelevant with what may become the country’s most valuable Affluent generation ever — Millennials. Take a look at your brand and the new future it is moving into.

Check out this research at http://www.unitymarketingonline.com

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